CONFIDENTIAL

7 By agreement, the Property Services Agency may undertake

capital works for the convenience of either the Hong Kong

Government or the United Kingdom Government.

8. All capital works undertaken under this Agreement will

revert to the Hong Kong Government if no longer required for

the purposes of the garrison.

9. The programmes of works. services provided for in paragraph 6 will be agreed and implemented in accordance with the Statement

of Works Procedures to be agreed between the two Governments.

10.

The UK Government agrees to release to the Hong Kong Government

without compensation notwithstanding any agreement or commitment

to the contrary each of the areas of land, including buildings,

installations and other fixtures, described in the first column

of Annex C.

(A) In the case of the areas described in Part I of Annex C,

within the financial year specified with respect to such area in

the second column of that Annex subject to the reprovision at the

expense of the Hong Kong Government of essential facilities, including any necessary temporary facilities, at suitable sites

in the periods specified; and

(B) In the case of the areas described in Part II of Annex C, by

the date specified with respect to such area in the second column

of that Annex subject to the reprovision of facilities as required

(c) In the case of the areas described in Part III of Annex C,

by the dates specified.

Nothing in this paragraph shall derogate from the United Kingdom

Government's obligation to release any land other than that described

in Annex C which is or may become surplus to the reasonable requirements

of the garrison and all such land, including buildings, installations

and other fixtures, shall be released without compensation notwith-

standing any agreement or commitment to the contrary.

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